I think we have to be careful NOT to over dramatize this situtation. The dog has a great home, lots of love & attention - not much to complain about. Being put in the carpeted basement is not a punishment or a negative thing. We humans tend to head down the 'poor dog' scenario when it isn't warrented. He has a good life - he just went from 2k sq. ft. to 800 sq ft. - still a pretty good play area for the day.

Perhaps this fellow could use a buddy? Have you ever thought of adopting an older lab to help give him some company? Your BF could pick him/her out so he feels like he is getting his own dog. I would recommend an older dog who is already set in his ways so you don't have to train a new puppy and really worry about furniture & carpet.